Ontario will not disclose cost of cancelling $100M Starlink rural internet contract
Ford government paid 'significantly less' than full contract to terminate deal following Trump tariff dispute; opposition demands transparency.
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Ontario has cancelled a $100-million Starlink contract without publicly disclosing the termination fee, sparking criticism from opposition parties demanding transparency.
The Ford government agreed to pay a cancellation fee that was "significantly less" than the full contract value, according to a statement, but declined to reveal the amount. The original contract, announced in November 2024, was supposed to bring Starlink satellite internet to rural and Northern Ontario by June.
The government first announced plans to terminate the deal in January, after U.S. President Donald Trump imposed sweeping tariffs on Canadian goods. In February, Premier Doug Ford told CNN he could not support Elon Musk, saying, "I can't support someone hell-bent on destroying our province." Musk has since left the White House and publicly criticized some Trump policies.
The Ford government released accounting of spending last week without any record of the Starlink payout. Treasury Board president Kinga Surma defended the secrecy, saying releasing the payout information would negatively affect the government's "competitive advantage" in future negotiations.
Liberal finance critic Stephanie Bowman pressed the government this week: "How much was it? And why is the government hiding it in the public accounts?"
NDP Leader Marit Stiles said Wednesday that the cancellation should have happened sooner, but said the Ford government still owes Ontarians a plan. "This should have been done a long time ago and the premier should have secured a proper deal for those in Northern and rural communities who still don't have the reliable internet that they were promised by this government. What is the premier's plan to deliver on this promise to Ontarians? Handing over hard-earned tax dollars to Elon Musk's company was never the right approach. Months have passed and we still don't have a plan or even a process that's calling for home-grown solutions," Stiles said.
Liberal Leader Bonnie Crombie also objected to the cancellation. The government said it is "seeking an alternate solution as we continue our efforts to secure long term, stable high-speed internet access across the province," but has not detailed what that solution is or when it will be announced.
What is Ontario's alternate solution for rural and Northern internet access, and when will it be announced?
What was the actual cancellation fee, and why does Treasury Board believe public disclosure would harm future negotiations?
We'll update this story as answers emerge.
The facts
What was the value of the cancelled Starlink contract?
The contract was worth $100 million and was originally announced in November 2024 to bring Starlink satellite internet to rural and Northern Ontario by June.
Why won't Ontario disclose the cancellation fee?
Treasury Board president Kinga Surma said releasing the payout information would negatively affect the government's 'competitive advantage' in future negotiations.
